Authorisation to carry on insurance business
Insurance Act 1973
TO: Allied World Assurance Company Limited ABN 54 163 304 907 (the Applicant) Level 21 Australia Square, 264 George Street, Sydney NSW 2000
SINCE the Applicant applied to APRA under subsection 12(1) of the Insurance Act 1973 (the Act), on 28 June 2013 for authorisation to carry on insurance business in Australia;
I, Brandon Kong Leong Khoo, a delegate of APRA, under subsection 12(2) of the Act, AUTHORISE the Applicant to carry on insurance business in Australia.
This Authorisation takes effect on the date it is signed. Dated: 20 May 2014
[Signed]
Brandon Kong Leong Khoo Executive General Manager Specialised Institutions Division
Interpretation Document ID: 213346
In this Notice
APRA means the Australian Prudential Regulation Authority.
insurance business has the meaning given in section 3 of the Act.
Note 1
Under subsection 12(4) of the Act, if APRA authorises an applicant, APRA must give written notice
to the applicant and ensure that notice of the authorisation is published in the Gazette.
Note 2
Note 3
APRA may revoke an authorisation in accordance with sections 15 and 16 of the Act.
Under subsection 13(1) of the Act, APRA may, at any time, by written notice to a general insurer,
impose conditions or additional conditions or vary or revoke conditions imposed on the insurer’s authorisation under section 12 of the Act. The conditions must relate to prudential matters.
Overview
The Insurance Act 1973 was enacted to provide a framework for the regulation of the insurance industry in Australia, aiming to protect policyholders and ensure the financial stability of insurance companies. The Act is overseen by the Australian Prudential Regulation Authority (APRA), which is responsible for granting authorisations to entities wishing to carry on insurance business in Australia. The policy objective of the Act is to maintain the financial soundness of authorised insurers, thereby safeguarding the interests of policyholders and the broader financial system. The legislative process ensures that insurance businesses operate under stringent regulatory standards, promoting trust and reliability within the market.
This authorisation, granted to Allied World Assurance Company Limited, exemplifies the Act's role in facilitating the entry of authorised insurers into the Australian market. By authorising the Applicant under subsection 12(2) of the Act, APRA not only validates the company's compliance with regulatory standards but also mandates the publication of this authorisation in the Gazette, ensuring transparency and public accountability. This regulatory step is crucial in upholding the integrity and stability of the Australian insurance sector, aligning with the overarching goals of the Insurance Act 1973.
Scope and Application
The Insurance Act 1973 applies to entities seeking to carry on insurance business in Australia, including both domestic and foreign insurers. The Act is administered by the Australian Prudential Regulation Authority (APRA), which has the authority to grant or refuse authorisation for these entities to operate within the Australian market. The authorisation extends to all forms of insurance business as defined under the Act, and encompasses both life and general insurance sectors. The Act's jurisdictional reach is national, applying to all authorised deposit-taking institutions and insurers across Australia, including the states and territories. While the Act broadly applies to all entities seeking to conduct insurance business, certain exclusions and exemptions may apply, particularly for specified types of insurance or particular entities as outlined in the Act or any subordinate legislation. APRA has the power to impose, vary, or revoke conditions on the authorisation, specifically relating to prudential matters, ensuring that the operations of insurers maintain adequate standards of financial soundness and consumer protection.
Key Provisions
The main operative sections of the document include subsection 12(1) and 12(2) of the Insurance Act 1973, which allow the Australian Prudential Regulation Authority (APRA) to authorise an applicant to carry on insurance business in Australia. The document specifies that the Applicant, Allied World Assurance Company Limited, has been granted this authorisation to conduct insurance business in Australia. This authorisation is effective from the date it is signed, as noted in the document dated 20 May 2014.
The Act imposes several obligations and requirements on the Applicant, including adherence to the terms and conditions set forth by APRA. Under section 13(1) of the Act, APRA has the authority to impose, vary, or revoke conditions related to prudential matters on the Applicant's authorisation. Additionally, under subsection 12(4) of the Act, APRA must provide written notice to the Applicant and ensure that the authorisation is published in the Gazette. These requirements ensure that the Applicant operates within the regulatory framework established by the Act and that the public is informed of the authorisation.
In terms of consequences for breach, the Act does not explicitly state specific offences, penalties, or consequences for non-compliance with the authorisation conditions. However, under sections 15 and 16 of the Act, APRA has the authority to revoke an authorisation if certain conditions are not met. The revocation of an authorisation could have significant implications for the Applicant, potentially impacting its ability to conduct insurance business in Australia. Although the exact penalties for non-compliance are not detailed in the document, the potential revocation of authorisation serves as a deterrent against breaching the terms of the authorisation.